By Mike Abbah
A former deputy director at the Central Bank of Nigeria (CBN), Prof Kingsley Moghalu, has faulted direct funding of Small and Medium Enterprises (SMEs) and Micro, Small and Medium Enterprises (MSMEs) by the apex bank. .
In a statement on Saturday via his X handle, Moghalu, the former presidential candidate of the African Democratic Party (ADP), argued that pipeline capital should rather be given through microfinance bank
Pipeline financing refers to funding activities towards a long-term goal that involves a series of discrete stages.
Moghalu outlined five key pillars essential for Africa’s development and called for a shift towards a more comprehensive approach to development.
According to him, Africa must focus on turning scientific advancements into commercially viable products that can drive economic growth.
His words, “The first business of African development is developing an endogenous mindset (worldview) of African development.
“Second: a strategy for overcoming poverty anchored on effective education and skills for productivity. Some are called to create wealth, others to create ideas and entertainment, others to lead, and yet others to serve. Some will be famous, others relatively unknown. But to be happy and content (while able to take care of oneself and family) is the greatest gift of a
“Third: ensure the availability of electric power infrastructure.”
According to him, the fourth pillar involves channeling scientific inventions and innovations into the marketplace through mass production.
He said: “Fourth: channel scientific inventions and innovations into the marketplace through mass production.
“Fifth: ensure access to what I call ‘pipeline capital’ to the bottom of the pyramid – SMEs, MSMEs etc at affordable interest rates through microfinance banks (task for central banks, but not central banks themselves directly funding -no!).”
